Families targeted in budget

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A $2 billion increase for health and $486 million of education initiatives are the key features of a big-spending Bracks Government budget designed to look after Labor's traditional supporters.

Among the main winners from the budget are families and country Victorians, with extra spending on children's health services and $259 million of country road projects outlined.

The spending was underwritten by soaring state tax collections, including a massive haul from home buyers as a rising property market pushed them into higher stamp duty brackets.

But the Government again resisted calls to revise stamp duty rates, instead delivering targeted help to first-time home buyers in the form of a new grant of $5000.

About 26,000 first-time buyers of homes worth up to $500,000 will be eligible for the "first home bonus", which will be available from the beginning of this month.

At a cost of $149 million, the grant is one of the most expensive new spending items over the next year. It can be used in conjunction with the Federal Government's $7000 first home buyers' grant.

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Mr Brumby said the Government would consider extending the grant scheme when it expired at the end of June next year.

Families will benefit from a $197 million "caring for children" package, which delivers more money to the child protection system, creates a new Victorian pediatric cancer service and delivers a $4.2 million lift to pediatric intensive care services.

More than 16,000 newborn babies will be tested for hearing impairment over the next four years under the package, and $34 million will be spent extending school dental health services to 77,000 kindergarten children and an extra 75,000 primary school students.

Mr Brumby said Victoria would record a healthy $432.5 million operating surplus in 2003-04, well up on the $245 million predicted a year ago. This year's surplus is being well supported by the property boom, with the combined take from land tax and stamp duty on property purchases expected to top $3.2 billion.

The budget papers say the Government will collect an estimated $29.99 billion in taxation, grants and other revenue in 2004-05, up 4.5 per cent on 2003-04. Employee costs, including wages, are predicted to jump by $643.2 million, or 6.5 per cent.

The Victorian economy is predicted to grow at annual rate of 3.25 per cent rate over the next two financial years.

Mr Brumby said the budget provided "real benefits for all Victorians".

"It puts more money directly into the pockets of Victorians. And it delivers major investment in schools, hospitals and the services Victorians value, need and use in their daily lives," he said.

Other features of the budget include:

A $111 million commitment to improve 65 schools.

Funding to hire 900 extra nurses.

$62 million over four years to hire 250 extra government school teachers.

$90 million boost to vocational education and training.

$64 million to replace and upgrade biomedical equipment and infrastructure in hospitals and aged care centres.

$20.4 million to build 19 new police stations, including Cranbourne and Springvale, and 14 in country areas.

$87 million to extend an exemption from stamp duty on property purchases for concession card holders.

More than $550 million for road projects.

Opposition Leader Robert Doyle said the budget would be remembered as one that "ripped money out of the pockets of pensioners, war veterans and health care card holders" to make them pay for car registration for the first time. "This is a greedy Government - a typical Labor government. You tax big. You spend big," Mr Doyle said.